Sen. Hagan and Sen. Tom Harkin (D-IA) presented the proposal Tuesday. They say higher education institutes need more financial oversight to ensure responsible spending. Sen. Hagan said the measure will prevent for-profit colleges in particular from recruiting people who might end up deep in debt.

"Some of the for-profit schools, I believe, are shamefully but successfully targeting individuals, and in particular, our brave men and women in uniform. That's what I'm trying to get at; to be sure that those dollars are not spent on marketing, recruiting and advertising."

In a statement, Sen. Richard Burr (R-NC) said the bill is largely unworkable. He said it would make it difficult for universities to comply and cause more problems than it would solve.